Questions & Answers
How to implement a verbal agreement with a partner while he neglects it?
Dear sir/madam,
I have a free zone company based in Sharjah, holding 51% shares and acting as a director, manager, and shareholder/partner. My partner who is holding 49% shares of the company is on the company's visa, as well as myself.
When he bought the company shares from my previous partner, we had a verbal agreement that he will give cash to support the company, including paying for the renewal fees, etc, because I will be the only one running the company on daily basis.
Now he is neglecting the agreement and always making excuses. The company renewal is due very soon. Am I protected on this case as it was only a verbal agreement (not a notarized agreement)?
I do have WhatsApp messages that he agreed on giving some cash to the company (not in English though). What legal action can I take to push him to give the cash to support the company?
Can I take him out of the company and what is the step to do so?
Hello,
As per your query, please note that since the partner has invested in the OPEX cost and also renewal, that's why you have provided the 49% share.
If the partner is not ready to invest any money further, then with the consent of your present partner, you can make him exit or sell some percentage of his share to any new investor.
As there is no written agreement that he will provide money for every renewal, it is not good proof.
Also, the renewal and every expense of the company should come from the earnings of the company.
You can also sell a portion of your share to add more investment.
